Gambling.com Group reports record revenue and EBITDA in Q3
US-listed affiliate sees share price soar in early market trading, with CEO Charles Gillespie championing the business as an “industry leader”
Gambling.com Group has reported record quarterly revenue of $32.1m (£25.3m) for Q3 2024 after a 37% year-on-year (YoY) jump driven by gains in Europe and the Rest of the World.
Adjusted EBITDA climbed 108% YoY from $6.1m to $12.6m, representing another quarterly record, with adjusted EBITDA margin rising from 26% to 39% in a strong quarter for the affiliate.
Net income also leapt 70% from $5m to $8.5m while free cash flow amounted to $14.2m, up 802% YoY.
The results release has seen Gambling.com Group’s shares leap in early market trading, up by 9.6% at the time of writing.
The affiliate also delivered more than 116,000 new depositing customers (NDCs) during the reporting period, a 35% YoY increase.
Geographically, North America revenue dipped 1% to $12.8m while the UK and Ireland reported a 43% spike to $9.8m.
Revenue in other European markets skyrocketed 192% YoY from $2.3m to $6.8m, while Rest of the World revenue rose 99% to $2.7m.
Casino came to fore during Q3, with the vertical recording a 63% YoY revenue increase from $15.2m to $24.8m.
Those gains were not matched in the sports betting arm, where revenue slipped 14% YoY to $6.8m.
Advertising and other revenues posted the strongest growth for the business, up 53% YoY to $4.8m.
Performance marketing revenue jumped 38% to $25.1m and subscription revenue was up 8% to $2.3m.
However, the affiliate did note total operating expenses increased 25% to $20.8m, mainly due to increased headcount costs and higher amortisation related to the Freebets.com acquisition.
Gambling.com Group bought Freebets.com and related assets for an initial $37.5m from XLMedia earlier this year.
Following the record quarter, bosses upgraded full-year 2024 guidance, with revenue now expected to land between £125m and $127m. The previous range was $123m to $127m.
Adjusted EBITDA guidance was also been improved slightly, moving from a previous range of $44m to $47m up to between $46.5m and $48.5m.
Charles Gillespie, Gambling.com Group CEO, said the Q3 performance was a reflection of the company’s “best-in-class execution in the affiliate sector to consistently grow market share around the world”.
He added: “The third quarter’s strong revenue growth and record adjusted EBITDA highlights Gambling.com Group’s position as an industry leader in creating value for both our shareholders and our online gambling operator clients.
“To complement our continued organic market share growth, we continue to evaluate opportunities adjacent to the core business to expand our footprint in the online gaming ecosystem as we progress towards our goal of $100m in annual adjusted EBITDA.”